Fortescue Metals Group Ltd (ASX: FMG) shares are taking a tumble today.
Shares in the S&P/ASX 200 Index (ASX: XJO) mining stock closed Friday trading for $15.39. In late morning trade on Monday, shares are changing hands for $15.02 apiece, down 2.2%.
For some context, the ASX 200 is down 0.4% at this same time.
As for Fortescue's top rivals, the BHP Group Ltd (ASX: BHP) share price is down 1.1%, while shares in Rio Tinto Ltd (ASX: RIO) are down 2.2%.
Today's underperformance of the ASX 200 mining stocks looks to be driven by another dip in the iron ore price, currently at US$95.80 per tonne. That's down from US$107 per tonne at the end of February.
Investors are likely also jittery about the new Trump steel tariffs, with the US President increasing duties on imported steel from 25% to 50%.
But with Fortescue shares now down 40% over the past 12 months – a far steeper one-year fall than the 15% loss posted by BHP shares and the 14% loss on Rio Tinto shares – is now a good time to scoop up the Aussie miner?
Should I buy the big dip on Fortescue shares?
Family Financial Solutions' Jabin Hallihan recently ran his slide rule over Fortescue (courtesy of The Bull).
While he sounded some positive notes on the ASX 200 miner, Hallihan isn't ready to recommend the stock as a buy just yet.
"This leading iron ore producer supplies global steelmakers while investing heavily in clean energy," said Hallihan, who has a hold recommendation on Fortescue shares.
According to Hallihan:
The company is aiming to become a major player in renewable energy through its Fortescue Future Industries division. Fortescue's iron ore business remains strong, supported by global demand.
He concluded:
It offers long term growth potential in clean energy, but near-term execution is uncertain, in our view. The shares are way off their highs and could easily move higher from these levels on positive news flow.
What's the latest from the ASX 200 miner?
Fortescue shares caught some unwanted headwinds in the latter half of May, following an update on the ramp-up of its Iron Bridge project in Western Australia.
Investors favoured their sell buttons after the miner reported the project's intended production levels wouldn't be reached as soon as previously expected.
Fortescue said it now expected to achieve Iron Bridge's nameplate capacity of 22 million tonnes per year in FY 2028. That goal was originally meant to be hit in September this year.
Offering some support to Fortescue shares, the miner said it still expects Iron Bridge to achieve its full-year FY 2025 guidance for iron ore shipments and operating costs.
